Nazara Tech zooms 12% on plan to raise Rs 100 cr from Nikhil Kamath's firms

The company said it is proposing to issue 1.4 million equity shares at a price of Rs 714 per equity share aggregating to Rs 100 crore proportionately to M/s Kamath Associates & M/s NKSquared.

Shares of Nazara Technologies hit a 52-week high of Rs 853.25, as they surged 12 per cent on the BSE in Wednesday’s intra-day trade after the company announced plans to raise Rs 100 crore by issuing shares on preferential basis to Nikhil Kamath’s firms.
Nazara, diversified gaming and sports media platform, today said its board has approved preferential allotment of equity shares to raise up to Rs 100 crore, subject to necessary approvals.

The company is proposing to issue 1.4 million equity shares at a price of Rs 714 per equity share aggregating to Rs 100 crore proportionately to M/s Kamath Associates & M/s NKSquared. These equity shares will be locked in for a period of 6 months from the date of issue.

Nazara said this infusion of fresh funds will be utilized to invest in funding requirements and growth objectives of the company including for making strategic acquisitions and investments in various companies, meeting growth and funding requirements based on the business opportunities.

Gaming in India is poised for strong growth in the years to come and Nazara has built a well-diversified, profitable gaming platform well suited to take advantage of opportunities in the years ahead, Nikhil Kamath, Partner of Kamath Associates & NKSquared said on the investment in Nazara.

Nazara is India's only listed gaming & esports company with majority ownership of a number of leading gaming & e-sports brands with presence in India, the US and other global markets. In e-sports, Nazara has India's leading esports platform Nodwin; PublishME in the Turkey / MENA market; and Sportskeeda and Pro Football Network in the sports media space.

Nazara's offerings across the interactive gaming segment include gamified early learning ecosystems Kiddopia and Animal Jam which are global leaders in their respective segments; India's most popular cricket simulation franchise World Cricket Championship (WCC); Classic Rummy in the Indian Real Money Gaming segment; and a wide portfolio of casual games distributed through telco emerging markets.

At 11:10 AM; Nazara was quoting 10 per cent higher at Rs 832.70, as compared to 0.01 per cent rise in the S&P BSE Sensex. The company made its stock market debut on March 30, 2021. It had issued shares at price of Rs 1,101 per share in initial public offering (IPO). The stock hit record high of Rs 1,678 on October 11, 2021. It touched an all-time low of Rs 475.05 on June 22, 2022.